PM Cameron received £200,000 in gifts from mom, potentially avoiding inheritance tax
Pressured over links to his late father’s offshore dealings, UK PM David Cameron has published statements on his personal finances. The disclosure reveals he received gifts totalling £200,000 from his mother, in what could be interpreted as an attempt to dodge inheritance tax.
Ian Cameron, the prime minister’s late father, is among those mentioned in the so-called Panama Papers, the massive leak of financial documents currently under investigation.
Critics have accused the PM of profiting from his father’s offshore dealings and failing to pay proper taxes. Facing growing criticism and street protests in front of his residence at 10 Downing Street, Cameron has now released statements in a move aimed at providing some transparency on the state of his finances.
But the disclosure has resulted in Cameron facing further questions over transactions which may be interpreted as an attempt to avoid paying tax – an accusation that undermines his credibility as Britain’s top official.
In 2011, Cameron’s 81-year-old mother, Mary, gave him £200,000 ($280,000) in two separate transfers, his published tax statements reveal.
Under British law, estates do not have to pay inheritance tax on assets the deceased gave away as gifts prior to death. The due tax becomes smaller the longer a person lives and is completely nullified in seven years. In the case of the money given to Cameron, the potential benefit would be £80,000 in dodged inheritance tax, according to the Guardian.